If you're buying agricultural land in Hawai‘i County—like in the lush pastures of Honomu on the Big Island—you may be eligible for a significant property tax break. The Agricultural Use Tax Exemption (officially called the Dedication for Agricultural Use) can reduce your land’s assessed value if it's genuinely used for farming or ranching.
Here’s a step-by-step guide to help you or your clients apply for this exemption and potentially save thousands in property taxes.
What Is the Agricultural Use Dedication?
Hawai‘i County offers a tax benefit for landowners who dedicate their property to agricultural or pastoral use (like cattle grazing, crop farming, or orchards). In return, the land is assessed at a much lower value, reducing your annual tax bill.
Who’s Eligible?
To qualify:
- The property must be zoned for agriculture
- The land must be actively used for agricultural purposes (grazing cattle counts).
- You must commit to using the land for ag purposes for at least 10 years.
- The landowner must apply—this does not happen automatically.
How to Apply for the Ag Tax Exemption
- Confirm Agricultural Use
- Ensure the land is currently used for grazing, farming, or other qualifying activities.
- You’ll need documentation (like a lease to a cattle operator or photos of activity).
- Download the Petition Form
- The form is titled: Petition to Dedicate Land for Agricultural Use
- Get it here: Download Form (PDF)
- Gather Supporting Documents
- A site plan or map of the property.
- Proof of agricultural activity:
- Cattle grazing agreement or lease
- Farming receipts
- Photos of the land in use
- Optional: Schedule F from your tax return
- Submit by the Deadline
- The application must be filed by September 1st.
- If approved, the exemption applies to the next tax year beginning July 1st.
- Annual Certification
- You must confirm continued ag use each year. If the land use changes or you cancel the dedication early, you could face rollback taxes.
What If the Current Owner Didn’t Apply?
If you're in escrow or under contract for a property that qualifies but isn’t yet dedicated, don’t worry. The buyer can apply after closing. Just make sure the land use qualifies and you apply before the September 1 deadline.
Where to Get Help
Hawai‘i County Real Property Tax Office (Hilo Office)
📍 101 Pauahi Street, Suite 4, Hilo, HI 96720
📞 (808) 961-8201
📧 Email: rpt@hawaiicounty.gov
🌐 hawaiicounty.gov/real-property-tax
If you're purchasing or managing ag-zoned property on the Big Island and need help navigating tax exemptions or rural land issues, feel free to reach out. I specialize in East Hawai‘i properties and am happy to share insights that could save you time and money.
— Dan Tousignant, REALTOR® in Hilo, HI
